Federal Home Loan Bank of Atlanta AHP Set-aside Product Training Member Education Presentation

Federal Home Loan Bank of Atlanta

AHP Set-aside Product Training

Member Education Presentation

F E D E R A L H O M E L O A N B A N K O F AT L A N TA

AHP Set-aside Product TrainingF E D E R A L H O M E L O A N B A N K O F AT L A N TA

AHP Set-aside Products

What you‘ll take away from this session:

An overview of FHLBank Atlanta’s new AHP Set-aside Products

An understanding of how to access product funds

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FHLBank Atlanta’s Exciting New Product Offering!

5 AHP Set-aside Products are now available

Community Stability Product

(CSP)

Energy Efficiency/ Weatherization Rehabilitation Product (EWP)

Accessibility Rehabilitation Product (ARP)

Foreclosure Recovery Product

(FRP)

Rehabilitation Products

First-time Homebuyer

Product (FHP)

Purchase Products


Are you interested in? The opportunity to generate fee income on purchase transactions Enhancing and developing realtor partnerships Reducing loan risk

Additional equity to reduce loan to value Improving the condition of collateral

Funding that can be combined with down-payment assistance from other sources

A streamlined process with reduced paperwork Addressing CRA requirements

FHLBank Atlanta’s New Set-aside Products can help!


The First-time Homebuyer Product provides matching funds for the down payments and closing costs of first-time homebuyers.

Product Highlights:Maximum subsidy is $7,500 per homebuyerFunding is provided as a 4 to 1 matchThe homebuyer must contribute at least $1,000The homebuyer must have income that is less than or equal to 80% AMI adjusted for family sizePurchased home must be used as the homebuyer's primary residenceHomebuyer must meet the definition of a first-time homebuyer as defined by the Cranston-Gonzalez National Affordable Housing Act of 1990

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First-time Homebuyer Product


FHLBank Atlanta's Community Stability product provides up to $7,500 in down-payment and closing-cost funding to first-time homebuyers or non-first-time homebuyers for the purchase or purchase and rehabilitation of an existing home in neighborhoods targeted for stabilization by a government or special district or authority.Product Highlights:Maximum subsidy is $7,500 per homebuyerFunding is provided as a 4 to 1 matchThe homebuyer must contribute at least $1,000The homebuyer must have income that is less than or equal to 80% AMI adjusted for family sizeHome must be located in a neighborhood targeted for stabilization by a federal, state, or local government entity or any special district or authority.

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Community Stability Product Expand Your

Market


Examples of Community Stability target areas include but are not limited to:

− Community Development Block Grant Target Areas− Tax Allocation Districts− Community Reinvestment Act Target Areas− Enterprise Zones− Special Planning Areas− State/Local Housing Agency Target Areas− Neighborhood Stabilization Program Target Communities− Disaster Recovery Zones− USDA Rural Designated Areas

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FHLBank Atlanta's Foreclosure Recovery product provides up to $15,000 in down-payment, closing-cost, and rehabilitation funding for the purchase or purchase and rehabilitation of an existing home from the Real Estate Owned (REO) inventory of an FHLBank Atlanta member financial institution. The funding is available to first-time homebuyers or non-first-time homebuyers.Product Highlights:Maximum subsidy is $15,000 per homebuyerFunding is provided as a 4 to 1 matchThe homebuyer must contribute at least $1,000The homebuyer must have income that is less than or equal to 80% AMI-adjusted for family sizeHome must be part of an FHLBank Atlanta member's Real Estate Owned property inventoryPurchase price of unit cannot exceed the "as-is" market value

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Foreclosure Recovery Product


Property Eligibility Requirements for Purchase Products

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First-time Homebuyer

Community Stability Foreclosure Recovery

AL, DC, FL, GA, MD, NC, SC, VA

AL, DC, FL, GA, MD, NC, SC, VA • Home must be located in a neighborhood targeted

for stabilization by a federal, state, or local governmental entity

AL, DC, FL, GA, MD, NC, SC, VA

Eligible Properties Owner-occupied units that are intended as the primary residence of the

homebuyer- Single Family detached- Condominiums- Townhouses- Foreclosed properties- Cooperatives- Manufactured and Mobile Housing

• Must be titled as real property in accordance with the laws and requirements of the jurisdiction where the property is located

- New construction• New construction requests are eligible when the home is within 30 days

or less of being closed (FHP and CSP only) Eligible Geographic Areas:


ExampleHomebuyer: Mr. W…

1st Mortgage Provided by Your InstitutionHome Sales Price $99,500Closing Costs $6,282Total Costs $105,782

Member First Mortgage $92,536AHP Set-aside $7,500Homebuyer down-payment $1,500Seller Contribution $4,246Member LTV (First Mortgage/Sales Price)

93%

Member LTV without AHP Set-aside(First Mortgage/Sales Price)

101%

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Reduce Loan Risk


Are you interested in? Enhancing your existing collateral Developing strategic partnerships with key stakeholders in your market

City, county and state government agencies Community development groups and nonprofit organizations Contractors

Funding that can be combined with other sources Cross selling products to current and potential customers Improving the condition of properties to facilitate refinancing A streamlined process with reduced paperwork

Paperwork can be initiated by community development groups or nonprofit organizations

Addressing CRA requirements


FHLBank Atlanta's Energy Efficiency and Weatherization product provides up to $15,000 for weatherization and energy efficient improvements of an existing owner-occupied home. Eligible improvements include but are not limited to exterior doors, HVAC systems, insulation, water heaters, roof, windows, and low-flow plumbing fixturesProduct Highlights:Maximum subsidy is $15,000 per homebuyerHave incomes at or below 80% AMI adjusted for family sizeHome must be owner-occupied and used as the borrower's primary residenceBorrower must have at least one year of ownership by a life estate or a full interest in the fee title

Rehabilitation products allow for the involvement of an intermediary organization or corporation working with the member. Soft costs, including intermediary fees, of up to 20% of hard costs are allowed.

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Energy Efficiency and Weatherization


FHLBank Atlanta's Accessibility Rehabilitation product provides up to $15,000 to pay for accessibility improvements of an existing owner-occupied home. Eligible improvements include but are not limited to exterior ramps and sidewalks, bathroom and kitchen renovations, door widening, and floor replacementProduct Highlights:Maximum subsidy is $15,000 per homebuyerHave incomes at or below 80% AMI adjusted for family sizeHome must be owner-occupied and used as the borrower's primary residenceBorrower must have at least one year of ownership by a life estate or a full interest in the fee title

Rehabilitation products allow for the involvement of an intermediary organization or corporation working with the member. Soft costs, including intermediary fees, of up to 20% of hard costs are allowed.

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Accessibility Rehabilitation


Eligible Uses of FundsMaximum funding of $15,000 available per homeownerFunds are to be used for the rehabilitation of an existing owner-occupied unit

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Energy Efficiency / Weatherization Rehabilitation Product (EWP)

Accessibility Rehabilitation Product (ARP)

Scope is limited to the following to advance energy efficiency / weatherization objectives:

Scope is limited to the following to advance accessibility objectives:

Scope of Work % of Max Funding

Scope of Work % of Max Funding

•Exterior Doors •Not to exceed 15% •Exterior ramp, sidewalk, and/or driveway

•HVAC •Not to exceed 55%•Handicapped bathrooms including toilets, sinks, vanities, grab bars, and showers

•Insulation •Not to exceed 15%

•Roof •Not to exceed 35% •Kitchen cabinets / sink •Not to exceed 45%•Carpentry to widen doors

•Windows •Not to exceed 40%•Replacement of floor coverings

•Not to exceed 50%•Low flow plumbing fixtures

•Not to exceed 15%•Other rehabilitation •Not to exceed 20%

•Other rehabilitation •Not to exceed 20%


Property Eligibility Requirements

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Eligible Properties Owner-occupied units that are intended as the primary residence of the

homebuyer- Single Family detached (1-4 Units)- Condominiums- Townhouses- Cooperatives- Manufactured and Mobile Housing

• Must be titled as real property in accordance with the laws and requirements of the jurisdiction where the property is located

Have at least one year current ownership- Life estate- A full interest in the fee title

Eligible Geographic Areas:

FHLBank Atlanta DistrictAlabama, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina,

Virginia


Example •Habitat for Humanity works with low and moderate income families as well as the elderly homeowners throughout the state to achieve the organization’s goal of safe and decent affordable housing

•Habitat has identified 15 low and moderate income homeowners in need of energy efficiency/ accessibility repairs

•Rehabilitation cost will be $10,000 per home

•Inspection costs before and after completion of repairs will be $250 per home

How much will Habitat earn if they coordinate the repairs for all 15 homes? Note: All participating homeowners must complete financial literacy counseling with CredAbility for a fee of $150


Maximum Available Funding (per home) $ 15,000

Rehab costs $ 10,000Soft Costs – 20% $ 2,000

Total Cost for this Home $12,000

Maximum Soft Costs $ 2,000Member Financial Institution ($200)CredAbility Counseling Fee ($150)Inspection fees paid ($250)

Habitat will earn $1,400 * 15 $21,000

Example


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Tools for SuccessProduct Expertise

• Technical Assistance

• Webinars/ Workshops

Product Brochures

Training Materials

• Training Materials

Interactive Website

• Customizable Product Brochures

• Audience Specific

Messaging

FHLBank Atlanta will provide:


Member financial institutions will

submit applications to

FHLBank Atlanta on behalf of the

homebuyer/ homeowner

Upon the approval of all documentation

required for funding FHLBank

Atlanta will credit funds to

the member financial

institution’s demand deposit

account

Member financial institutions will disburse funds:

Prior to loan closing for

purchase productsAfter work is

completed for rehabilitation

products

Intermediaries apply for funds for

eligible homebuyers/ homeowners through an

FHLBank Atlanta member financial

institution

How To Apply


Do You Have Deal?...Give us a call!How To Get StartedNew AHP Set-Aside Product Users

1. Execute the Set-aside Product Agreementhttp://www.fhlbatl.com/docs/cis/15-ahp-set-aside-agreement.pdf

2. Designate a Program Managerhttp://www.fhlbatl.com/docs/cis/2-program-manager-designation.pdf

3. Submit Your Applications• Required with initial application for funding:

– Sample retention documents (note and mortgage)– Completion of product training

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http://www.fhlbatl.com/docs/cis/15-ahp-set-aside-agreement.pdf

http://www.fhlbatl.com/docs/cis/15-ahp-set-aside-agreement.pdf


We are happy to help

Do You Have Any Questions?


Business and Relationship DevelopmentGeneral Information, Member Activation, Product Eligibility, etc.(800) 536-9650, Option 3, Option 3ShaDonte Dozier (DC, MD, SC, VA)CIS Business and Relationship Development Manager

Louis Freeman (AL, FL, GA, NC)CIS Business and Relationship Development Manager

Johnetta TinsleyCIS Lending & Disbursement Documentation Specialist

Contact Us For More Information

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Documents

Federal Home Loan Bank of Atlanta AHP Set-aside Product Training Member Education Presentation